INVESTMENT OPPORTUNITIES IN THE POWER, STEEL AND ALUMINIUM SECTORS
Government has concluded plans towards revitalization of installations of the Power Holding Company of Nigeria, PHCN (fomerly known as NEPA) to enable it meet its total installed capacity of 6000MW. Sufficient funds are being injected for the rehabilitation of ageing plants and equipment. In order to allow full private sector participation in power generation, transmission and distribution. All laws that inhibit private sector participation in the power sector are being reviewed with a view to amending them and encouraging investment. This step will complement the de-consolidation of the industry as far as the state-owned PHCN is concerned.
The hitherto largely over-centralized operations of this agency will be decentralized. Guidelines and framework for Independent Power Products (IPP’s) are now being put together following the interests and applications already put forward by independent producers from all around the world.
Investment Opportunities exist for hydro-power generation in Mambilla Fall, Adamawa State and Agbokin fall in Cross-River State. PHCN will readily negotiate a Memorandum of Understanding (MOU) with any foreign energy company to cover the following areas:
- Development of energy resources and infrastructures • Management of energy infrastructure
- Commercialization of energy
- Training; and Exchange of information and experience.
It is expected that further discussions will centre on:
- Construction and management of power stations by private companies.
- Production of Steam and gas turbine spare parts.
- Repairs and testing of power transformers.
- Development of wind turbines for generation of electricity; Manufacture of distribution transformers and line hardware.
- Technology transfer through joint erection of new power plants.
- Training of PHCN staff in computer based maintenance system etc.
- PHCN and the foreign company will then set up a joint committee for the purpose of achieving these objectives.
THE STEEL SECTOR
Plans by the Ministry to revitalize the steel sector are underway. As a first step to reviving the sector, technical audit and cost estimate for completion of Ajaokuta Steel Project are being contemplated. The Ministry is also planning to rehabilitate the Delta Steel Company and three in-land Steel Rolling Mills in the country with a view to making them function effectively. Staff training and development is also being given attention because local skilled manpower availability can motivate an investor into the industry. These are aimed at putting the sector in a state of readiness for foreign investment.
In consonance with the nation’s technical and economic co-operation policies for this sector, some areas of joint co-operation have been identified, and investors will be encouraged to invest in the sector. Discussions will centre on joint venture commercial operation of the completed units of the Ajaokuta Steel Project. Investors will be encouraged in the following areas:
- Iron Making Plant with capacity to produce 1.35 metric tones of billets.
- Billet Mill with capacity to produce 795,000 tones of billets per annum.
- Light Section Mill with capacity to produce 400,000 tones of bars per annum.
- Medium Section Mill with capacity to produce 130,000 tones of wire coils per
annum; and Engineering Workshops comprising.
- The Power Equipment Repair Shop.
- Forge Fabrication and Rubberizing Shop with capacity to produce 4,200 tones of
THE ALUMINIUM SECTOR
The Aluminum Smelter Company of Nigeria, ALSCON, The present administration is making efforts to ensure that the aluminum smelter plant is properly funded. It has given invitation to private investors to invest in the company and/or take part of Nigeria’s shares. The plant is one of the best and biggest in the world with the most modern technology. A number of countries have signed or are negotiating trade and economic cooperation agreements with Nigeria. Since the essence of these bilateral agreements is to foster unity: boost economic growth and technological co-operation, foreign investors should take advantage of existing bilateral ties and hearken to the call to invest in the ALSCON project as in other projects in the power and steel sectors.